Board of approval to decide on Navi Mumbai SEZ next month

ET BureauJan 23, 2010, 12.27am IST

NEW DELHI: The fate of the proposed Navi Mumbai multi-product SEZ promoted by RIL chief Mukesh Ambani's aide Anand Jain is likely to be decided in the meeting of the board of approval (BoA) for SEZs next month.

The board is scheduled to look at a host of other proposals including eight requests for setting up new zones, two proposals for conversion of in-principal approvals to formal approvals (which is given once land is acquired by developers), several requests for extension of validity of formal approvals where time for making investments has run out and addition and deletion in notified areas of several SEZs.

The BoA, comprising key officials from a number of ministries including commerce, finance, agriculture and home, will meet on February 11.

Three requests for denotification of SEZs where developers no longer want to make investments due to the uncertain economic environment will also be considered. This includes TCG Urban Infrastructure Holdings' biotech SEZ in Kerala and Sanvo Resorts IT/ITeS SEZ in Maharashtra.

Navi Mumbai SEZ, a multi-product zone spread over 1,234 hectares, which is facing problems in maintaining continuity because of a road and railway line running through the zone, was given formal approval in March 2007 on the condition that units would be allowed to be established in the zone only when the developer builds all the required underpasses and over-bridges as laid down by the BoA, to ensure contiguity.

However, the developer suggested that it should be allowed to construct two skywalks instead of the flyovers and maintain secured connectivity on the ground instead of the underpasses. Since revenue officials were not fully satisfied with the alternatives suggested and were concerned about revenue leakages, the BoA suggested that the development commissioner of the zone should have a meeting with the chief commissioner of customs, Mumbai, to work out a solution.

The developers have now submitted a report to the BoA including steps taken to comply with modifications suggested by the chief commissioner of Customs. The BoA will also consider it in its meeting.

The new proposals include one by JNPT, the country's top port, which wants to set up a port-based SEZ and a multi-product SEZ by Smart World City Infrastructure in Tuticorin. State-owned telecom giant BSNL has sought permission to become a co-developer of the Dahej SEZ.